In a significant advance for renewable energy, VITAGRO has become the first Ukrainian company to transport biomethane through the country’s domestic gas transmission network. This milestone, reported on October 2 by UBN, positions Ukraine to potentially export biomethane to Europe.
VITAGRO’s €6 million biomethane plant is currently operating at 60-70% capacity, producing about 6,000 cubic meters of gas daily. Full capacity is expected by the end of October, with exports anticipated to begin in November, contingent upon sufficient production levels.
The plant follows the integration of a biomethane facility by Ukraine’s Regional Gas Company (RGK) into its network last year. This RGK facility is projected to produce roughly 3 million cubic meters annually for nearly 1,500 customers. Overall, Ukraine operates 77 biogas plants with a total production capacity of approximately 260 million cubic meters per year.
Adomas Audickas from MHP indicated that five biomethane plants, including MHP’s, could collectively export up to 100 million cubic meters by year-end, with government projections suggesting exports could reach 1 billion cubic meters by 2030.
The drive for biomethane aligns with Ukraine’s strategy to mitigate reliance on Russian gas, particularly with the expiration of its gas transit contract approaching. However, challenges remain, including regulatory barriers in key European markets like Germany.
To spur investment, Ukraine plans its first green energy auction, aiming to allocate support to renewable producers. The government is also considering measures to enhance profitability guarantees for renewable projects, addressing concerns about the market’s responsiveness to international investors.
As Ukraine aims to position itself as a green energy hub in Europe, it faces competition from neighboring countries, particularly in the biogas sector, underscoring the need for a conducive investment environment.
